Franchise misrepresentation provision won’t stay dormant for long

Franchise jurisprudence in Ontario is steadily leaving its infancy years behind. Yet most cases about pre-sale disclosure are based on one, albeit vital, statutory cause of action: rescission.

The other key statutory cause of action that relates to pre-sale disclosure — “misrepresentation/failure to comply with disclosure obligations” — has been so far mostly dormant. There appears to be lack of appreciation of the role that this provision can have in the developing jurisprudence of pre-sale franchise disclosure claims in Canada.